What other business records must a Bombs Away franchisee keep?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
sts to develop and open the Business, with costs allocated to the categories described in Item 7 of Bombs Away Franchising's Franchise Disclosure Document and with such other information as Bombs Away Franchising may request.
- 10.4 Business Records. Franchisee shall keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents (including, but not limited to, payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks and paid invoices) for at least three years. Franchisee shall keep such other business records as Bombs Away Franchising may specify in the Manual or otherwise in writing.
- 10.5 Records Audit. Bombs Away Franchising may examine and audit all books and records related to the Business, and supporting documentation, at any reasonable time. Bombs Away Franchising may conduct the audit at the Location and/or require Franchisee to deliver copies of
books, records and supporting documentation to a location designated by Bombs Away Franchising.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must maintain complete and accurate books and records that reflect all expenditures and receipts of the business. These records must be supported by documentation, including payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, canceled checks, and paid invoices, for at least three years.
In addition to these specific records, Bombs Away franchisees must also keep other business records as Bombs Away Franchising may specify in the Manual or otherwise in writing. This provision allows Bombs Away to request additional records beyond those initially listed, providing flexibility for the franchisor to monitor the franchisee's business operations and financial performance.
Bombs Away Franchising retains the right to examine and audit all books and records related to the business at any reasonable time. This audit can occur at the franchisee's location or by requiring the franchisee to deliver copies of the records to a location designated by Bombs Away. The franchisee may be responsible for reimbursing Bombs Away for audit costs if the audit is triggered by the franchisee's failure to submit required reports, non-compliance with the system, or if the audit reveals an understatement of gross sales by 3% or more for any month. This underscores the importance of maintaining accurate and compliant records to avoid potential financial penalties and maintain a good standing with Bombs Away.